ConocoPhillips (NYSE:COP) reported fourth-quarter results that fell short of analyst earnings expectations, although the company recorded higher production levels and maintained its long-term capital return strategy.
The oil producer reported earnings per share of $1.02 for the quarter, below Wall Street forecasts of $1.18 per share. Production during the period averaged 2,320 thousand barrels of oil equivalent per day, representing an increase of 137 MBOED compared with the same quarter last year. However, when adjusting for acquisitions and asset divestments, production declined by 63 MBOED, or 2.6%, year-on-year. Operating cash flow for the quarter totalled $4.3 billion.
“ConocoPhillips delivered another year of strong performance in 2025, achieving our CFO-based return of capital target and growing our base dividend at a top-quartile S&P 500 rate, in line with our returns-focused value proposition,” said CEO Ryan Lance.
“Looking ahead, we’re focused on driving a $1 billion reduction in our capital and costs in 2026, while returning 45% of our CFO to shareholders. We are well positioned to deliver an expected $7 billion in incremental free cash flow by 2029, including $1 billion each year from 2026 through 2028.”
The company reaffirmed its 2026 capital spending plan of approximately $12 billion and expects adjusted operating costs of about $10.2 billion, consistent with its previous guidance.
ConocoPhillips forecast 2026 production to range between 2.33 million and 2.36 million barrels of oil equivalent per day. First-quarter production is expected to average between 2.30 million and 2.34 million barrels per day, factoring in potential weather-related operational disruptions.
The company also anticipates depreciation, depletion and amortisation expenses to total between $11.7 billion and $11.9 billion in 2026. Adjusted corporate and other segment net losses are projected to reach roughly $0.9 billion, excluding special items.
ConocoPhillips reiterated its commitment to shareholder returns, stating that it plans to distribute approximately 45% of operating cash flow to shareholders in 2026, in line with its long-term capital allocation framework.